Advantages and Disadvantages of Fdi in China and India
www.ccsenet.org/ibr
International Business Research
Vol. 5, No. 5; May 2012
Advantages and Disadvantages of FDI in China and India
Tarun Kanti Bose (Corresponding author) Assistant Professor, Business Administration Discipline, Khulna University Khulna 9208, Bangladesh Tel: 880-1911-451-044 Received: February 25, 2012 doi:10.5539/ibr.v5n5p164 Abstract This study was directed towards detecting the positive and negative sides for the foreign investors while they go for direct investment in India and China. A descriptive and explorative research study has been carried out for investigating the current proposition of the concerned case of FDI in those two countries. Advantages of investing in India includes-Huge market size and a fast developing economy, availability of diversified resources and cheap labour force, increasing improvement of infrastructure, public private partnerships, IT revolution and English literacy, openness towards FDI, regulatory framework, and investment protection, where as few drawbacks likes huge section of poor and middle class, bureaucracy, power shortage and ethnic diversified are also available in the country. As far as the case of China is concern positives areas are the immense size and growth of the Chinese economy and very bright prospects, resource availability and low cost of labour force, immense development in relevant infrastructure, openness to international trade and easy access to international markets, development and alteration of the regulatory framework, investment protection and promotion. There are also few drawbacks as well like the regulator burden, hindrances in free flow of information, lack of English literacy and so on. Keywords: FDI, India, China, Positives and negatives, International trade 1. Introduction In this 21ST century globalization makes this planet as a global village and people of different countries are getting closer and closer (Dunning, 2002). Due to immense development of technologies
International Business Research
Vol. 5, No. 5; May 2012
Advantages and Disadvantages of FDI in China and India
Tarun Kanti Bose (Corresponding author) Assistant Professor, Business Administration Discipline, Khulna University Khulna 9208, Bangladesh Tel: 880-1911-451-044 Received: February 25, 2012 doi:10.5539/ibr.v5n5p164 Abstract This study was directed towards detecting the positive and negative sides for the foreign investors while they go for direct investment in India and China. A descriptive and explorative research study has been carried out for investigating the current proposition of the concerned case of FDI in those two countries. Advantages of investing in India includes-Huge market size and a fast developing economy, availability of diversified resources and cheap labour force, increasing improvement of infrastructure, public private partnerships, IT revolution and English literacy, openness towards FDI, regulatory framework, and investment protection, where as few drawbacks likes huge section of poor and middle class, bureaucracy, power shortage and ethnic diversified are also available in the country. As far as the case of China is concern positives areas are the immense size and growth of the Chinese economy and very bright prospects, resource availability and low cost of labour force, immense development in relevant infrastructure, openness to international trade and easy access to international markets, development and alteration of the regulatory framework, investment protection and promotion. There are also few drawbacks as well like the regulator burden, hindrances in free flow of information, lack of English literacy and so on. Keywords: FDI, India, China, Positives and negatives, International trade 1. Introduction In this 21ST century globalization makes this planet as a global village and people of different countries are getting closer and closer (Dunning, 2002). Due to immense development of technologies